The contraction of the company, the sharp decline in tourists, and the sluggish consumption have made the local business environment worsened
The business community is facing great difficulties. In particular, the tourism and retail industries of the hotel are subject to catastrophic effects, and there will be a closing tide at the end of the year. Businesses in these areas are difficult to do, and their property prices will be adjusted considerably.
Supply and demand is one of the criteria for measuring prices. The demand for industrial and commercial shops has been greatly reduced, prices have fallen more, housing demand has not been greatly reduced, and prices have been lowered
The Policy Address has increased the number of first-time mortgages so that more people can get on the bus and support small and medium-sized units. However, there are still many people who wish to lower property prices. It is best to drop the property prices by 3 to 50%. Everyone can get on the train with great joy. This idea is understandable but unrealistic. The reason is that the Hong Kong Government has always been a hot market. It is management demand, not demand reduction. Purchasing power is only temporarily suppressed.
Why is it that housing is difficult to fall? Mainly from two aspects of analysis. First of all, look at the housing policy of the Hong Kong Government. Hong Kong’s industrial development is single. Land is an important resource of Hong Kong. The annual revenue from the sale of land and related stamp duty and various profits tax accounts for about 40% of the total revenue. The high income, and the sale of land, it is necessary to expand other aspects of the tax, such as the increase in salaries tax and corporate profits tax, in order to maintain large public expenditure. Hong Kong is known for its simple tax system and low taxes, which attracts foreign investment and makes it easier to change this system.
The land finance policy of domestic cities is similar to that of Hong Kong
The mainland authorities use the land finance to finance infrastructure and credit loans. Hong Kong uses the income from land sales to increase the reserves of the warehouses and maintain various social expenditures. The land finance is for China and Hong Kong. Both are very important. In the past 10 years, the price of property in the big cities in the Mainland has risen much higher than that in Hong Kong. Just like the neighboring Shenzhen, the price of the property is similar to that of Hong Kong. The high housing prices have forced some unaffordable people to move to remote towns, but they There are not too many complaints, and this situation is very different from Hong Kong.
Secondly, Hong Kong has a population of 7.4 million. In addition to the floating population, it is estimated that there are nearly 8 million people living in Hong Kong, and the per capita living area is only 161, so the private building is very expensive. In the case of insufficient land supply, even if the Hong Kong Government cites the Lands Resumption Ordinance and recovers a large amount of agricultural land and brownfields, it is afraid that the Government will be able to build a house with the attitude of the Hong Kong Government and the fact that there is no judicial review procedure. Waiting for 6 to 7 years or more, Yuanshui can’t save near fire. Moreover, in order to appease the grassroots, the Hong Kong Government will mainly build low-cost self-occupied houses with public and Hong Kong priority, and intend to separate the two markets from private buildings. Therefore, in the absence of changes in demand, the private property market may only slowly adjust.